Instead of being operated as a sole proprietorship, every small business should have a formal business structure. Doing so will make sure that you are personally isolated from any liabilities that may come up while operating a business. By setting up an LLC, you are taking the necessary steps to make sure you are not held personally liable for any legal or financial actions taken against your business.
When you set up an LLC, you are given the same personal liability protection that corporation affords, but you have less of the corporate formalities to deal with. Also, with an LLC, or limited liability company, you get to choose how profits are taxed. The choices are to be taxed like a corporation, or to be taxed as a pass-through entity, similar to how a partnership is taxed.
Like a corporation, an LLC is a separate legal entity that can get its own tax identification number, open up its own bank accounts, take out loans in its name, as well as conduct business in its name. As the owner, you are not personally liable for actions taken in the name of the LLC, including any debts it may incur.
Because they combine the personal protection of a corporation with the tax advantages and flexibility of a partnership, it is easy to see why setting up an LLC is becoming more popular. An LLC has fewer paperwork requirements than a corporation to maintain its status, which is just yet another reason that smart business owners are making the decision to setup an LLC business structure.
After making the wise decision to set up an LLC, the next smart move you can make is to use an online LLC formation service to set up your LLC. Compared to using a traditional law firm, you can save yourself a great deal of money by using a service such as LegalZoom. You also eliminate the possibility of filing errors that you may make if you tried to file the necessary LLC paperwork on your own.
You really have no reason to not set up your LLC online when there are plans starting at $99 plus state filing fees. To see how the leading online LLC services compare, please see the below comparison tables.
Smart entrepreneurs are setting up an LLC online, saving themselves money and ensuring the paperwork is filed correctly.
| Basic Set Up LLC Packages Include: | ![]() Economy |
![]() Basic |
![]() Economy |
| Read Review | Read Review | Read Review | |
| Price (+State Fees) | $99 |
$129 | $99 |
| Preliminary LLC Name Check with State | |||
| Review of Formation Documents | |||
| Preparation & Filing of Formation Documents | |||
| Customized Operating Agreement | $99 | ||
| Sample (Non-Customized) Operating Agreement | N/A | N/A | |
| LLC Kit & Company Seal | $99 | $99 | |
| 6 Months of Registered Agent Service | $149/Year | ||
| Expedited Processing (State Fees May Apply) | $60 | $60 | |
| Expedited Shipping | $20 | $18 | |
| Federal Tax ID (EIN) Application Preparation | $30 | ||
| Prepare Application & Obtain Federal Tax ID (EIN) | $79 | $70 | $75 |
| Business License Application Package | $99 | $99 | |
| Overall Rating |
| Middle Set Up LLC Packages Include: | ![]() Standard |
![]() Standard |
![]() Basic |
| Read Review | Read Review | Read Review | |
| Price (+State Fees) | $249 | $250 | $279 |
| Preliminary LLC Name Check with State | |||
| Review of Formation Documents | |||
| Preparation & Filing of Formation Documents | |||
| Customized Operating Agreement | $99 | ||
| Sample (Non-Customized) Operating Agreement | N/A | N/A | |
| LLC Kit & Company Seal | |||
| 20 Customized Membership Certificates | |||
| Microsoft Office Accounting Express 2008 Download | |||
| 6 Months of Registered Agent Service | $149/Year | ||
| Expedited Processing (State Fees May Apply) | $60 | ||
| Expedited Shipping | $20 | ||
| Federal Tax ID (EIN) Application Preparation | $30 | ||
| Prepare Application & Obtain Federal Tax ID (EIN) | $79 | $70 | $75 |
| Business License Application Package | $99 | $99 | |
| Overall Rating |
| Top Start an LLC Packages Include: | ![]() Express Gold |
![]() Complete |
![]() Complete |
| Read Review | Read Review | Read Review | |
| Price (+State Fees) | $359 | $350 | $399 |
| Preliminary LLC Name Check with State | |||
| Review of Formation Documents | |||
| Preparation & Filing of Formation Documents | |||
| Customized Operating Agreement | $99 | ||
| Sample (Non-Customized) Operating Agreement | N/A | N/A | |
| LLC Kit & Company Seal | |||
| 20 Customized Membership Certificates | |||
| Microsoft Office Accounting Express 2008 Download | |||
| 6 Months of Registered Agent Service | $149/Year | ||
| Expedited Processing (State Fees May Apply) | |||
| Expedited Shipping | |||
| Federal Tax ID (EIN) Application Preparation | |||
| Prepare Application & Obtain Federal Tax ID (EIN) | $49 | ||
| Business License Application Package | $99 | $99 | |
| Overall Rating |